The IRS has proposed regulations regarding the clean fuel production credit (https://bit.ly/4kctoAO). The regs are intended to explain how clean transportation fuel makers can claim the $1-per-gallon tax credit. Created by the Inflation Reduction Act and commonly called the “45Z rule,” the credit was amended by the One Big Beautiful Bill Act (OBBBA). Among other things, the OBBBA extended it to Dec. 31, 2029; limited production feedstocks to those from the U.S., Canada or Mexico; and added restrictions on foreign entities. The proposed regs cover credit eligibility, emissions rates, and certification and registration. Stakeholders are encouraged to comment on the draft by April 6.
Our Blog 